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ARTICLE · 27 DECEMBER 2023

Federal Government Continues The Prompt Payment Trend

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On December 9, 2023 the federal Prompt Payment for Construction Work Act (Act) came into force. The decision to move forward with a prompt payment regime applicable...

CanadaReal Estate and Construction
Kyle Lambert
Kyle Lambert
Jessica Brandon-Jepp
Jessica Brandon-Jepp
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On December 9, 2023 the federal Prompt Payment for Construction Work Act (Act) came into force.

The decision to move forward with a prompt payment regime applicable to federal government construction and infrastructure projects continues the push toward the use of prompt payment and adjudication mechanisms across the country. Ontario, Alberta, and Saskatchewan have also implemented prompt payment legislation, while others (Nova Scotia, Manitoba, and New Brunswick) have legislation that has yet to come into force.

Given the limited scope of federal jurisdiction over construction matters, the Act will affect only projects involving federal real property or federal immovables. Nevertheless, federal government projects are substantial employers and can be very large in scope, involving numerous general and subcontractors at a given time. Projects on military establishments, airports, ports, bridges, and other areas of federal jurisdiction may be affected.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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